The Indian stock trading market witnessed a skyrocketing evolution from sitting under a banyan tree in Mumbai in 1855 to Ring base trading in the Bombay Stock Exchange (BSE) building. The 1990s marked a significant transformation from a conventional open floor trading system to a sophisticated electronic screen-based trading system known as BOLT on the BSE and NEAT on the NSE. Smartphone penetration made trading stocks possible from anywhere in the world. Therefore, markets are literally in traders’ hands. Since its start, India has made significant progress towards becoming one of the world’s largest mobile-based stock trading markets.
Given that we have successfully transitioned to the T+1 settlement system, Indian capital markets are currently among the most secure & technologically advanced. Shares purchased today are credited to the investor’s demat account the following day, and the seller’s account too. Only a small number of nations use the T+1 settlement system.
Today an investor can open a trading cum demat account online quickly and easily and trade from the comfort of his home without relying on his broker, access his trading reports online, and promptly submit any questions owing to the advent of technology. This illustrates the power of technology.
With a wealth of domain knowledge, the future has a lot to offer to make trading simpler. About 20% of all exchange trading volumes in 2021 were conducted on mobile devices. Traders now frequently deploy mobile apps like Moneycontrol, Stockedge, Quantsapp, Opstra, and others to access a variety of market data and information for effective trading. Since Algo-based trading now accounts for more than 60% of all exchanges, trading volumes have increased exponentially in recent years.
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With the aid of algorithms, market participants can trade more effectively based on a predetermined set of rules in milliseconds. Traders can see market patterns, find untapped possibilities, and examine their portfolios in real-time thanks to data analytics. A paradigm shift in the world of stock markets has been brought about by the advent of various Fintech businesses. In order to trade in markets, traders can select from a number of technical/fundamental analytical software and data analytics tools.
Artificial Intelligence along with algorithm has proved to be a gamechanger in the field of trading. Traders utilise Application Programming Interface (API) to connect two or more applications for efficient trading. The skyrocketing growth of APIs along with the use of encryption and other security measures reinstates the confidence of investors that their transactions are secure.
